The Oxford Biblical Studies Online and Oxford Islamic Studies Online have retired. Content you previously purchased on Oxford Biblical Studies Online or Oxford Islamic Studies Online has now moved to Oxford Reference, Oxford Handbooks Online, Oxford Scholarship Online, or What Everyone Needs to Know®. For information on how to continue to view articles visit the subscriber services page.

Related Content

More Like This

Show all results sharing these subjects:

  • Social sciences
  • Economics


Show Summary Details


destination principle of taxation

Quick Reference

A regime of international taxation according to which consumption taxes are levied where products are consumed. The rates of VAT and excise applied are those of the country of final consumption, and the entire revenue accrues to that country's budget. This system ensures production neutrality, since indirect taxes do not discriminate between foreign and domestic producers, and exports are exempt from domestic taxation. The disadvantage is the need for monitoring of cross-border trade flows. See also origin principle of taxation.

Subjects: Social sciencesEconomics

Reference entries